Obama: Unemployment Likely To Keep Ticking Up

WASHINGTON — President Barack Obama on Tuesday declined to predict how high unemployment will climb but made clear he expects it to keep worsening for a while as hiring lags behind other signs of economic recovery.

"How employment numbers are going to respond is not year clear," the president said on a day when he was headed to Michigan, home of a particularly battered economy. "My expectation is that we will probably continue to see unemployment tick up for several months."

The unemployment rate stands at 9.5 percent, the highest in 26 years.

Obama, addressing reporters in the Oval Office, said the stabilization of the financial markets has allowed banks to start lending again and some small businesses to stay afloat. But he said his administration is aware that the most important factor is whether people are able to get good-paying jobs.

More than 2 million jobs have been lost since Congress passed Obama's $787 billion economic stimulus package. Without that government intervention, Obama said, states like Michigan would be even worse shape because they would have had to lay off more teachers, firefighters and other workers.

The White House has been criticized for being overly rosy about employment projections. Just 10 days before taking office, Obama's top economic advisers released a report predicting unemployment would remain at 8 percent or below through this year if an economic stimulus plan won congressional approval.

Instead, it is headed toward double digits.

The president said the creation of jobs that pay good wages is the "single biggest challenge" in the recovery for the U.S. and governments worldwide. He defended his multi-pronged agenda of trying to revamp health care, energy, science innovation and infrastructure as the key to real economic growth.

"Those foundations are so critical because we've got to find new models of economic growth," Obama said.

Obama was headed later to Michigan to promote investments in community colleges. The state's unemployment rate is the nation's highest, 14.1 percent.

The president spoke after a wide-ranging meeting with Dutch Prime Minister Jan Peter Balkenende.

Comments

[HekmabaJuzimax]

Unemployment will continue to rise as more and more business owners make a political statement against Obama by laying off workers and blaming the economy.

[Christopher in NYC]

.... and the business owners will find themselves waiting in line at the unemployment office together with the same employees that they laid off.... perfect logic.

[kcmookie]

"business owners make a political statement", one of the more stoopid posts I have ever seen. Talk about spiting your face by biting off your nose...

[conservatist2010-12]

Now we know your Economically challenged­....I can hardly wait to hear this....Wh­y would a business owner lay himself off..or take less pay to appease Obama

[jazzdrummerb]

We see signs that the housing market is beginning to stabilize.

[DaveyDavey]

"Oh, unemployment is going to go up!"

How slow do you have to be when what economists were saying last October suddenly dawns on you now?

[kcmookie]

lol.

[mandennis]

well, the economists from the CBO are saying that as early as the last quarter of THIS YEAR, we will know the answer if unemployment and total output worsen.

[mandennis]

is everybody in the worst case scenario after saying the stimulus has failed? the worst case is a deflation. People have a fixation of correlating high unemployment with the deficits and ergo the stimulus is a failure (even when the $787 B is not yet all in). again, let us reserve judgment and wait for the actual numbers to come in.

[kcmookie]

Someone fially posted an intelligent statement, thanks!

[ManwithaParachute]

I certainly hope this makes a positive difference but, I am reminded that the American worker is too small to save and that is a sentiment shared by both parties. Never fear though, Wall Street is depending on you to pay for their mistakes and they expect a bonus every quarter.

[conservatist2010-12]

The Democrats have made "shovel ready projects" a nightmare,with their OVER REGULATION­..TAXES..a­nd EPA RULES....W­e will have a natural recovery in 2012 before these jobs get clearance

[Avanti2]

Then you will have to wait through 2012 since the last portion of the "Stimulus" money doesn't get into the system tell then.

[llfutrell]

WHAT??? But, But, But, Mr. President.­......YOU said it would not go above 8 if your BILLIONS of dollars were approved to go out to all your buddies that you owed IOU's to for paying for your campaign. Where's the JOBS you PROMISED would come if ALL THAT MONEY was spent??? You mean you really actually cant BUY your way out of a recession?? Is what the Republicans have been trying to tell everyone coming true......­.Dear Leader, I am so disapponted.

[kcmookie]

Correct, Republican would have issued a tax break, to the point of a negative tax, which then would have the government giving you money instead of taking it, which in turn would have been a stimulus, but we could have called it a tax break. Whew, glad we worked that all out.

[aofh]

Republicans gave us tax breaks in 2001 after the tech bubble burst. Most of it, of course, went to the fattest cats. I suppose you could call it a passive stimulus: government debt ballooned. When the economy did start to recover, it was very slow.

[conservatist2010-12]

Fair or Flat Tax.....NO­W

[jozzie]

The last Prez had nothing but cajones. Now this one has none.

The big multi-national banks are happy either way.

[Christopher in NYC]

What are "cajones..­.?"

Is that the stuff between George W. Bush's ears?

[Joel Redman]

Yes, the last prez had the cajones to crap on the constitution, suspend oversight of the private sector, attack two nations, torture prisoners, and spy on our own citizens.

Great line of attack there ...

[NYC80]

but at least he forced congress to pass his imperial powers. What about Obama when he will crucify congress and Wall street and put the interest of mainstream first.

[Pablo175]

Nine months into the fiscal year, the federal deficit has topped $1 trillion for the first time.

[Christopher in NYC]

Would have never reached that figure if the US never invaded Afghanistan and Iraq, and if the Republicans hadn't allowed the banks to give money away for free...

[kbkw54]

Where are the jobs that Obama said the stimulus money would create? Obama has no idea what he is doing. We will pay for his mistakes for many years to come.

[Christopher in NYC]

The Republicans are doing everything in their power to derail the stimulus plan....

THAT's why the jobs aren't materializing yet....

[willt7311]

Can you prove that?

[kcmookie]

Tax cuts for everyone! That will solve our problems!

[Matt91304]

You are correct, its worked in the past. Raising taxes will not solve our problem, that's been proven in the past also.

[kcmookie]

Please see the years 2000-2008 to see how well that worked out for us....

[mandennis]

it's sarcasm!

[boogiewoman]

This didn't just start on Sept. 15 2008 , or on January 20, 2009. MSM just started screaming when Paulson needed 700 billion in a matter of days, how soon we forget. It's been ruff out here for years. Bush could have cared less about main street , all he was worried about was his wars and making money for his friends in high places. Its going to take time to clean up this mess the rethugs left and President Obama is the best man for the job.

[rollingdivision]

Hey we just hit 9.7 percent and climbing, were on the way to a little under 12 percent! What stimulus plan?

[Christopher in NYC]

"What stimulus plan?" you ask?

Ask the Republican party why they're going out of their way to stall it from unfolding.­... You'll find your answer there.

[rollingdivision]

Specifically, how are Republicans stalling the Obama stimulus plan?

[Eeesh]

eight ,8,VIII, ate, 4+4, 10-2 percent, % ....... exactly why is this not as bad as "READ MY LIPS"?

[willt7311]

Because a democrat said it.

[kcmookie]

Still pointing fingers, way to be a problem solver!

[rollingdivision]

Editorial: Obama's stimulus plan is not working
Plan to spend the nation out of recession isn't stimulating the economy or creating jobs
The Detroit News

President Barack Obama's plan to attack the recession through massive deficit spending is not producing the results the president promised in February when he convinced the American people to go deep into hock in the name of creating jobs and boosting economic growth.

Obama is well into spending the $787 million approved by Congress for his stimulus programs, and yet the unemployment rate is still climbing and economic recovery remains elusive.

Administration economists projected that the huge influx of borrowed federal dollars would keep the national unemployment rate from breaking through the 8 percent mark. It stands at 9.5 percent today and is still rising.

[mandennis]

"Obama is well into spending the $787 million approved by Congress ..." Wrong. It is not even 10% yet.

[kcmookie]

Well into spending? There is the false leap in logic that cause your entire statement to be baseless. By all accounts, very little has been spent to date.

[rollingdivision]

Oh I don't know 78 Billion is a lot of money. But, hey if you think Obama made a mistake by having the money spend too slowly....­....

[mrsfolksinger]

Best not or I am not voting Dem next time

[RightWingMarine]

welcome to the Libertarian party?

[kcmookie]

You forget your only other 'real' choice was worse by a loooooonnnnng shot.

[SantaFeConservative]

I don't think that is true. What we have elected isn't working out so well.

[spinns17]

http://www.wired.com/underwire/2008/09/joker-bashes-bu/